Avondale Restaurant and Apartment
For Sale
$1,199,000
3256 N Elston Avenue, Chicago, IL 60618
Restaurant and apartments in booming Avondale, great visibility, high traffic.
Property Size5,368 SF
Price / SF$223.36
Days on Market164
Property Features for 3256 N Elston Avenue
General Information
Standard status
Active
Size
5,368 SF
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$16,049
Building Details
Building Size
5,368 SF
Year Built
1916
Stories
2
Units
3
Listing Agency:
Chicagoland Brokers, Inc.
(773) 745-1000
Listed By:
Petru Amarei · License #471013177
(773) 745-1000
Source:
Midwestrealestate
Added: Mar 13
Changed: Aug 23
Last Checked: Aug 2 at 9:52AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Chicagoland Brokers, Inc.
Investment Insights
Based on property information with market context.
This property presents a restaurant and business opportunity in Avondale, featuring a 5,368 square foot building. The property includes a 2,500 square foot restaurant space with two full basements providing 2,000 square feet of storage. Additionally, there are two 2-bedroom apartments. The property is situated in a location with high visibility on a corner lot, benefiting from a traffic count of 15,000 cars per day. It offers accessibility, being close to the Kennedy Expressway ramps via Sacramento, Kedzie, and California, and is a 15-minute walk to the Blue Line at Kimball. The location is near several major proposed townhouse complexes within several blocks. The estimated monthly rent for the restaurant space is $5,000, and the total estimated monthly rent for the apartments is $4,000, resulting in a total estimated monthly building rent of approximately $9,000 or $108,000 per year. It is perfect for an owner-user.
Key Highlights
- High Income Potential: Estimated $108,000 annual rent from restaurant and apartments.
- Prime Location in Booming Avondale: High‑visibility corner lot with significant new development nearby.
- Large Building Size: 5,368 square feet suitable for various business ventures.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$89,860
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.49%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,797,200
$1.8M
Cap Rate 7%
$1,283,714
$1.3M
Cap Rate 9%
$998,444
$998.4K
Market Conditions
NOI Build-Up for 5,368 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$128.8K $24.00/SF
− Vacancy
−$9.0K −$1.68/SF
EGI
$119.8K $22.32/SF
− OpEx
−$30.0K −$5.58/SF
NOI
$89.9K $16.74/SF
Area
ZIP 60618
Vacancy
7.00%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,797,200
Cap Rate 7%
$1,283,714
Cap Rate 9%
$998,444
Alternative Uses
Best Use
Specialty Retail
$1.28M
$1.12M – $1.50M
NOI $89,860 @ 7.0% cap · market cap 7.49%
Second Best
Multifamily LT 5
$1.23M
$1.08M – $1.44M
NOI $86,429 @ 7.0% cap · market cap 7.21%
Theoretical Best
Office A
$2.35M
$2.05M – $2.74M
NOI $164,177 @ 7.0% cap · market cap 13.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,819
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 60618, IL
90,316
Population
41,053
Households
2.2
Avg Household Size
35
Median Age
55%
College-Educated
89%
High-School Grad
5.0 sq mi
ZIP Area
18,063
Density / Sq Mi
$101,558
Median Household Income
$60,263
Median Earnings
$1,534
Median Rent
$538,300
Median Home Value
Market
Vacancy Rate% for Multifamily in Midwest region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Restaurant and apartments in booming Avondale, great visibility, high traffic.
Where is this conventional restaurant located?
The property is located at 3256 N Elston Avenue Chicago, IL.
What is the asking price?
The asking price for this property is $1,199,000.
What are key features of this property?
This property features: High Income Potential: Estimated $108,000 annual rent from restaurant and apartments.; Prime Location in Booming Avondale: High‑visibility corner lot with significant new development nearby.; Large Building Size: 5,368 square feet suitable for various business ventures.
